Assume that Judy is engaged in painting as a hobby. During the​ year, she earns $1,300 from sales of

Assume that Judy is engaged in painting as a hobby. During the​ year, she earns $1,300 from sales of her paintings and incurs $1,400 expenses for supplies and lessons. Judy​'s salary from her job is $65,000.

Requirement

What is the tax treatment of the hobby income and​ expenses?

PI:6-33

ReeseReese

 is an accountant employed by a local firm. During the​ year,

ReeseReese

 incurs the following unreimbursed​ expenses:

Requirements

a.	Identify which of these expenses are deductible and the amount that is deductible by ReeseReese.  Indicate whether they are deductible for or from AGI.
b.	Would the answers to Part a change if the accounting firm reimburses ReeseReese  for these expenses under an accountable​ plan?
c.	Assume all of the same facts as in Part​ a, except that ReeseReese  is​ self-employed. Identify which of the expenses are​ deductible, and indicate whether they are deductions for or from AGI.